- You can understand a personal loan as being a financial lending instrument through which you can borrow a certain amount of money.
- As compared to a traditional loan, a personal loan comes with features such as instant disbursal, the online application process, competitive rate of interest, and a flexible repayment system which is otherwise missing.
- Most personal loans in India arrive with a completely online application process.
Delhi, the land of dreams and infinite opportunities are known for many things. Starting all the way from the historic sites of the Mughal period all the way to testaments of how our country functions, one can truly discover a lot, just by wandering in the alleys of Delhi. Being the country’s capital city, Delhi is home to by far one of the most vibrant populations in the world. However, even among all these opportunities and the constant hustle, a lot of us might find ourselves amidst a financial crisis.
If you are a resident of Delhi or you are just visiting the iconic city for a few days, and you have been considering for some time now to get a personal loan, this article is for you, as we will be discussing the ins and outs of personal loans in Delhi and how you can secure one for yourself.
What Is a Personal Loan?
One of the first and most important things we need to understand is the exact meaning of a personal loan. In simple terms, you can understand a personal loan as being a financial lending instrument through which you can borrow a certain amount of money, usually in the range of ₹5,000 to ₹25,00,000, and pay it back via a flexible repayment system.
While the concept of a personal loan is not exactly new, it has been gaining a significant amount of popularity in the last few years, mainly due to the influx of lenders who specialize in rendering this service, along with the list of features it offers.
As compared to a traditional loan, a personal loan comes with features such as instant disbursal, the online application process, competitive rate of interest, and a flexible repayment system which is otherwise missing. All of these and much more stand as testaments to the advantages of personal loans in India, and we will explore each one of them in detail in the upcoming sections.
1. Online Application Process
If you have ever considered taking a traditional loan in the past, you are well aware of the long queues and physical application forms you need to fill out just to apply for the loan. Since most traditional lenders depend on legacy systems for the majority of their operations, it is becoming increasingly difficult for the average consumer to find time out of their busy schedules and actually apply for these loans.
On the other hand, most personal loans in India arrive with a completely online application process, meaning that you can complete the entire process right from the comfort of your home and upload all the necessary documents electronically to the lender’s server.
Having a completely online application process not only saves you time but also makes sure that you get the loan amount delivered to your account when you need it the most.
2. Instant Disbursement
In lieu of the earlier point, since most traditional lenders depend on a legacy system, in most cases, they take an extended amount of time to verify all the information you shared, assess your application and actually render out the loan. In India, most traditional loans generally take between 4 days to 30 days to get approved, and although this might not sound like a long time when you are in between a financial crisis, every minute counts, and thus a faster disbursement is more helpful.
On the other hand, most personal loans in India follow a completely online application process and also leverage modern technology such as Artificial Intelligence and Machine Learning to automate the majority of manual tasks. Swift automation allows these lenders to assess your application in a matter of hours and also cross-verify all the information you shared. Once done, the lender takes a maximum of 48 hours to disburse the loan, thus making sure that you receive the money in your account when you need it the most.
3. Competitive Rate of Interest
If you research the interest rates charged for traditional loans in India, you will quickly take note of the fact that most of them charge you an interest rate between 2% to 10%, and while this might not sound like a lot, in the long run, this can become quite a financial burden. Since the traditional lending space is more or less saturated, key lenders have no motivation to offer customers a better rate, and thus, in the end, you pay a hefty price for availing the features of a loan.
On the other hand, in the case of a personal loan, Money View, which is a Bangalore-based NBFC, offers instant personal loans starting as low as an interest rate of 1.13% per month, which is by far the most affordable in the market. Since the competition in the personal loan market is intense, lenders generally tend to offer a very competitive interest rate on their loans, making it easier for you, as the end consumer, to take advantage of it.
4. Flexible Repayment System
Last but not least, in most traditional loans, the lender pre-defines both the EMI you are deemed to pay every month along with the date on which the EMI needs to be paid. Although this is an excellent strategy from the lender’s perspective, as they are essentially minimizing their risk, this strategy will make it harder for you to manage your personal finances.
On the other hand, most personal loans in India arrive with a flexible repayment system meaning that you have the option to choose both the EMI amount as well as the monthly date of repayment, thus enabling you to better plan your personal finances.
How to Get a Personal Loan in Delhi?
Now that we have covered the majority of personal loans in India, the only question that remains is how you can get a personal loan in Delhi. Well, the steps are quite simple, and the most significant of them are as mentioned below:
- Search for the term “personal loans in Delhi” and go through the list of all the personal loan offers you arrive at. While you are indulged in this step, make sure to take note of both the interest rate being offered as well as the tenure, as both these factors will primarily determine how much the loan will cost you in the long run.
- Once you have gone through the offers, choose one which you feel will best meet your needs and requirements.
- Visit either the official website of the lender or download their smartphone application to initiate the application process.
- Keep your documents handy (like eKYC and income information) and electronically share them with the lender.
- Fill out your personal information and complete the application process.
Once the lender receives your application, they will verify the information you shared, and if approved, you will receive the money in your bank account in less than 48 hours.
So that was all about how you can get a personal loan in Delhi. We hope that we have answered all your questions and if not, comment down below, and we will surely reply to them all.
Until next time take care and happy borrowing.